Kuku says cargo, sweet spot for FAAN, agency rejigs airport concession plan

The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku has said that the cargo business remains a sweet spot for the agency while lauding the incredible job the operators of Mallam Aminu Kano Airport, Kano, the Jos Airport and the commitment of the Gateway International Airport, Ilishan, Ogun State are using the aerodromes to achieve with cargo airports.

She also stated that the agency was working on the advisory end of the airport concession programme in terms of project development and economics.

 

Murtala Muhammed International Airport, Lagos

Fielding questions from TVC when she appeared on a programme on Thursday Kuku noted that it’s not just about building the infrastructure or investing more in the infrastructure on the ground but ensuring that there’s a feeder system that starts from the bottom of the value chain to drive cargo.

Her words, “There are various segments of cargo. I think agro and pharma are two critical areas that we have been looking at. Agro is specifically around making sure that there’s food security, so the distribution of food items in the market, specifically within Nigeria, and certain items that can be exported.

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“What that means is that in terms of the bottom of the chain, the value systems, making sure that the states are working very closely with DFIs in terms of aggregating the products or the produce that need to go out, making sure that you’re sort of aggregating a database that also focuses on packaging, logistics, also testing labs around some of those airports so that we can at least start to drive a lot more cargo activity.”

To drive economic activities to many of the idle airports, the FAAN MD said there is a need to improve the infrastructure linkage to the airport facilities by ensuring a collaboration between FAAN and the state government by fixing the road network that leads into the airports including the transit facilities that are available.

Her words, “, I’ll give some examples like the case with the Federal Capital Territory, Abuja has a rail line that terminates at the airport. It makes it easier for people to come here, whether they are travelling passengers or to conduct economic activity at the airport. We recently had a meeting with the Lagos State government last week. They do have a road that is coming in from Alimosho, which will also open up the area”.

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“So the linkage is very important in terms of making sure that we can drive this activity. Alright. The third is really around transit hubs. So let me just wrap up very quickly. It’s establishing certain locations and transit hubs. Lagos and Abuja, of course, are the main areas that we’re looking at. And I mentioned earlier, which is also to prioritise the cargo exports.”.

She explained that the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo had at different fora expressed the commitment of FAAN for public-private partnership to drive the transformation of these airports that they are looking at.

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She reiterated that a public-private partnership is required for the concession of some of the airports.

He said she was glad that Keyamo and her are on the same page on the airport concession project and that private sector participation is required.

Aviation Minister, Festus Keyamo and FAAN MD, Olubunmi Kuku

“A hybrid model is what we’ve preached for. And that’s making sure that for the commercial activities, we’re able to commercialize those. You just spoke about the concessions. The minister has been working very closely with us at FAAN to make sure that the concession process is thorough. There has been a review. So, of course, there has been a review of the last concession process as well.”

“When it comes to concessions, it’s one thing to potentially find a private sector partner to work with you on those concessions.”

Wole Shadare

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